Writeup AP 2011-12 - Punjab State Planning Board

Annexure ‘B’
Revised Guidelines regarding Utilisation of Untied Funds – 2011
The concept of untied funds was introduced in 1988-89 with the objective to carry
out the works of emergent nature which are normally not covered under the schemes
decentralized at the district level. These funds are mainly allocated for filling up the missing gaps
and for completing the in-complete public utility assets.
2. The following guidelines may be adhered to strictly while utilizing the untied
funds :-
(a) The works undertaken with the untied funds should be developmental in nature,
based on the locally-felt needs. The emphasis should be towards increasing the
efficiency of capital assets already created and to add to the productivity and
welfare.
(b) The funds should be used for works of non-recurring nature and for the purposes
such as provision of visible service support facilities and for benefit of general
public. It should not include any recurring expenditure such as on staff or
maintenance of such facilities.
(c) The cost of one work should be upto Rs 50.00 lakhs and no spill-over expenditure
will be permissible.
(d) So far as technical and administrative sanctions under these funds are concerned,
the decisions of the District Planning & Development Boards will be final. If need
be for the purpose of implementation of works with these funds, full and final
powers can be delegated to the district technical and administrative functionaries.
(e) Public contribution should be encouraged. The works under untied funds category
would be executed by the different district level executing agencies such as PWD,
Panchayati Raj, Rural Development Agency, Gram Panchayats, PTA, NGOs etc.
The heads of the respective district department(s) would be responsible for the
coordination and overall supervision of the works. The Untied funds are very
limited, so that the executing agencies should not claim any administrative
charges. But if due to some reasons the administrative charges are necessary, then
the maximum up to 3% can be given. Besides this, the executing agencies would
not charge any administrative charges for their services of preparatory work,
implementation, supervision etc. While allocating the untied funds, priority should
be given to those Panchayati Raj Institutions, Urban Local Bodies and Non-
Government Organizations (Regd), which are ready to make contributions from
their own resources on a matching or otherwise basis.
592